3 ms·
It's pretty amazing that we pay ~$90 a month to Verizon but only ~$13 a month to Apple. Intuitively it feels that Apple is the one creating most of the value.
by midas 15y ago
It's pretty amazing that we pay ~$90 a month to Verizon but only ~$13 a month to Apple. Intuitively it feels that Apple is the one creating most of the value.
- jonknee 15y agoYou're aware that Verizon is also paying Apple right? The $200 you paid for your iPhone turns into $600 for Apple.
- midas 15y agoThe post looks at the no-contract prices, so it assumes you paid ~$600 for the phone and then sold it for ~$300 18 months later.
- pragmatic 15y agoLook at Verizon's profit vs Apple's. http://www.bloomberg.com/news/2012-01-24/verizon-posts-loss-on-pension-costs-as-rising-iphone-sales-boost-expenses.html http://www.bloomberg.com/news/2012-01-24/verizon-posts-loss-... > Verizon and rivals such as AT&T Inc. sell the Apple Inc. (AAPL) iPhone and other smartphones at a loss as they compete to get customers to sign up for contracts that typically run for two years. Verizon et al, run a 24x7 data/voice nationwide network. That involves constant physical construction and capital investment. Apple is the clear winner, selling their product at a premium with the middle man subsidizing the consumer's purchase price.
- rythie 15y agoPutting up 1,000s of cell phone towers isn't exactly cheap and it's not like you can get it done in another country because it has to be done in your home country.